The average American’s net worth spikes 15% after retirement — here’s why some retirees aren’t tapping their nest eggs until later and how to take full advantage of the growth ASAP

Retirees aren’t tapping their nest egg

Retirees’ net worth may initially grow if they don’t need to touch their nest egg. Indeed, there’s some evidence that retirees aren’t taking income from their retirement savings until later in retirement.

A JPMorgan Chase study analyzed by Smart Asset found that, from 2013 to 2018, 80% of retirees didn’t withdraw from accounts requiring required minimum distributions (RMDs) prior to reaching RMD age, which was 70.5 at the time and is now 73.

Further, once they started taking RMDs, they withdrew only the minimum amount, which suggests they could live off other income sources for at least the first few years of retirement.

One of these income sources might have been Social Security retirement benefits.

In 2023, the average age for starting retirement benefits was 65.2, but 22.5% of men and 24% of women took their benefit at age 62, according to the SSA.

In March 2025, the average monthly benefit paid to retirees was $1,997.13, which translates to an annual income of about $23,965.

A defined benefit (DB) pension is another potential source of income that doesn’t draw on retirement savings. While DB pension plans are less common nowadays than they used to be — and are largely confined to unionized and public sector workers — there are still millions of Americans who are beneficiaries of public and private DB plans.

These retirees receive lifetime income from these plans, starting from the time they retire. They may be able to rely solely on this income, but if the amount is less than they’d like, it can be supplemented with Social Security — and they may not need to draw from their savings.

Although it’s not a consistent form of income, retirees may have inherited money that they can then use to cover living expenses and reduce their dependence on savings — or they could invest it, which could directly increase their net worth.

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Retirees tend to spend less

Helping to stretch these initial income streams is the fact that people tend to reduce their real consumption expenditures when they retire and continue to do so through the early years of retirement, according to the Financial Planning Association.

Some of this may be related to frugality — or fear they haven’t saved enough — but it may also be attributable to less spending on clothing, entertainment and dining out.

A bigger nest egg can drive a new retirement plan

When retirees can live off other sources of income and don’t need to tap their retirement accounts, the investments in these accounts can continue growing, leading to a higher net worth. At the same time, many retirees’ homes are also appreciating in value, further contributing to net worth growth.

Post-retirement net worth growth is a reminder that financial planning doesn’t end at retirement. Retirees experiencing growth in their net worth may want to work with a financial advisor to evaluate whether this should change their plans.

For instance, if the growth is in their portfolio, they may want to assess whether they should allow their investments to keep growing at the same pace or perhaps reduce some of their risk — or even cash out some profit to preserve their gains in a volatile market.

More broadly, it’s a good time to re-evaluate their goals, income streams and spending. For example, it may make sense to draw from investments now and delay taking Social Security.

For some, this growth may be needed to ensure they don’t run out of money in their lifetime. Others may see it as an opportunity to increase their retirement income and live less frugally — opening up new possibilities for their golden years.